Washington, DC — Today, the Biden administration reversed a Trump-era regulation that allowed insurance companies to sell association health plans. These junk plans lack patient protections under the Affordable Care Act (ACA) and can discriminate against people with pre-existing conditions and fail to cover essential services like hospital visits, maternity care, and prescription drugs. Association health plans are particularly harmful to communities of color and other marginalized groups who are more likely to have poorer health and to be living in poverty.
In response, Protect Our Care Executive Director Brad Woodhouse issued the following statement:
“Donald Trump’s scheme to expand association health plans was all a part of his efforts to deliberately sabotage the Affordable Care Act and line the pockets of big insurance companies. These junk plans can discriminate against people with pre-existing conditions, deny coverage for lifesaving care, and leave patients with thousands of dollars in unexpected medical bills. After failing to repeal the ACA in Congress, Trump did everything he could to undermine the law, leaving patients in the dust. Now, President Biden and his administration are working every day to strengthen the ACA and make sure that everyone has affordable and high-quality coverage.”
Background
Association Health Plans And Short-Term Plans Leave Patients Behind. These plans are not required to cover the essential health benefits required by the Affordable Care Act and are allowed to charge people more based on their age, health status, and gender. AHPs have a long history of fraud and unpaid claims and provide weaker cost and protection coverage. The proposal also applauds efforts by the Trump administration to expand short-term limited-duration plans, which engage in predatory marketing practices, fail to protect people with pre-existing conditions, and put patients at risk of bankruptcy when they get sick. The Trump administration’s decision to expand access to these plans exposed consumers to scams and reduced transparency about coverage limits and hidden fees.